A draft Security Council report leaked yesterday concluded that only eight out of 15 member countries would support the bid, which was launched amid much fanfare in September.

The support of nine countries was needed to force President Barack Obama to follow through on his promise to block the Palestinian Authority's application for full membership of the UN.

In Parliament today William Hague, the Foreign Secretary, is expected to lay out Britain's reasons for abstaining, a position taken alongside France, Germany, Portugal, Colombia and Bosnia Hercegovina.

He is expected to say that although the Government sympathises with the Palestinians' plight, and condemns the construction of illegal Israeli settlements on Palestinian land, that a long lasting peace deal can only be achieved through negotiations with the Israelis.

"The only way for a viable Palestinian state is through the resumption of meaningful negotiations," said a Western official.

The Palestinians had been able to secure the support of eight countries – China, Russia, India, South Africa, Lebanon, Nigeria and Gabon – but was unable to prevail with the Bosnians, who had wavered.

The Balkan country's tripartite government was divided in its opinion, requiring an abstention under its constitution.

The Palestinians launched their bid claiming that Israeli intransigence under Prime Minister Benjamin Netanyahu had left it no choice but to pursue statehood at the UN, despite threats by Israel and the US congress to cut off vital funding.

Success would have granted full national status to the West Bank and the Gaza Strip, which is run by the militant Hamas organisation.

They could still force a vote by asking the Lebanese, who represent them at the UN, to push forward a motion, but are unlikely to go through a process that would lead to inevitable defeat.

A more likely course for the Palestinian Authority will be to pursue an upgrade in its status at the UN from the current "observer organisation" to "non-member state".

The so-called Vatican option would allow the Palestinians access to organisations such as the International Criminal Court and could not be prevented by a US veto.

The PLO's quest for international legitimacy has been boosted by the granting of full membership by Unesco, the UN's cultural and scientific arm.

UN officials have discouraged UN agencies to follow Unesco's lead.

"I believe this is not beneficial for Palestine and not beneficial for anybody," said Ban Ki-moon, the UN Secretary-General.

US laws requiring an automatic cut-off in funds to UN agencies that grant statehood recognition to the Palestinians already have threatened massive cuts to Unesco.